consolidation loan

American  

noun

1. a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period.

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consolidation loan British  

noun

1. a single loan which is taken out to pay off several separate existing loans

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Example Sentences

One way to simplify things is to take out a consolidation loan, turning lots of smaller, more frequent payments into one payment on a simpler schedule.

From MarketWatch

“If your credit score is healthy and you can qualify for a consolidation loan and a low interest rate, if that can save you money because it’s a lower interest rate than what you’re currently paying … then it would make sense.”

From MarketWatch

“The timely repayment of a consolidation loan that reports to your credit bureau is more beneficial to you in that area than an invisible batch of buy-now-pay-later accounts,” McClary said.

From MarketWatch

Consolidating a defaulted loan allows a borrower to pay off one or more federal student loans with a new direct consolidation loan.

From Los Angeles Times

Before paying off the debt through a consolidation loan, a borrower must either agree to repay the new direct consolidation loan under an income-driven repayment plan or make three consecutive on-time, voluntary full monthly payments on the defaulted loan.

From Los Angeles Times